Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 32)
What impact does declaring and paying a cash dividend have on a company's financial statements?
Increases assets and increases owner's equity.
Decreases assets and decreases owner's equity.
Increases liabilities and decreases owner's equity.
Decreases assets and increases owner's equity.
Explanation
Cash (asset) goes down and retained earnings (equity) goes down.
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